Intel’s future is looking a bit grim. And the reality is the chip maker’s problems are only going to get more challenging. By Tae Kim.
Browsing: Pat Gelsinger
Intel said its factories will start making Qualcomm chips as it laid out a road map on Monday to expand its new foundry business to catch rivals such as Taiwan’s TSMC and Samsung Electronics by 2025.
Chip maker Intel said it still faces supply chain constraints and gave an annual sales forecast that implied a weak end of the year.
Chip makers from Taiwan to the US are cranking up production to address shortages that have hammered car manufacturers and other customers as they try to emerge from the coronavirus pandemic.
Intel CEO Pat Gelsinger has predicted the shortage of semiconductors that’s hurting industries from automotive to consumer electronics will bottom out in the second half of this year.
Intel’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved.
Taiwan has suffered a sudden reversal of fortunes. The pandemic comes just as a drought triggers power outages, stoking economic uncertainty and threatening the world’s chip supply.
Dell Technologies will spin off its 81% stake in cloud computing software maker VMware in a move that will help the PC maker reduce its debt.
Nvidia plans to make a server processor chip based on technology from ARM, putting it in the most direct competition yet with rival Intel.
On the surface, Intel’s strategic pivot comes at an ideal moment. But despite its bold vision, the company is set to face challenges to its grand turnaround plan that will prove extremely difficult to overcome.